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Nearly 78% of ICOs in 2017 were scams, according to a report

12 Jul, 2018
by Richard Allen
News
Nearly 78% of ICOs in 2017 were scams, according to a report

A recent study conducted by the Satis Group, which forms part of a five-entry series analyzing the state of the cryptocurrency environment, came to a concerning conclusion: the clear majority of ICOs launched in 2017 were scams.

According to CoinDesk, the report calls them “Identified Scams,” essentially projects that were identified as "did not have/had no intention of fulfilling project development duties with the funds, and/or was deemed by the community (message boards, website or other online information) to be a scam."

The report goes on to say, "On the basis of the above classification, as a percentage of the total number of ICOs, we found that approximately 78 [percent] of ICO's were Identified Scams, ~4 [percent] Failed, ~3 [percent] had Gone Dead, and ~15 [percent] went on to trade on an exchange.”

A recent study by a team from the Boston College conducted a report and similarly determined that more than half of the token projects they examined fell into inactivity within four months of the sales.

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